BMI View: Nigeria’s hydrocarbon sector continues to struggle amid worsening political and business environment. Most recently, Chevron decision to move out of the OKLNG project signals that even the large upside potential of the Nigerian gas market is not sufficient to offset the degradation in investor sentiment. The weak output flows in 2012 were the consequence of flooding, repeated oil thefts and regulatory uncertainty. We expect feeble production from 2013 and for the following two years. Output should rampup more significantly as many large fields come online after 2014, more than offsetting current depletion. Adoption of the Petroleum Industry Bill, …
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